Agenda - Public Works Committee - 11/15/2011

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Councilmember Backous explained that the City of Coon Rapids was the last city that had water and sewer backup insurance so this is an effort by the League of Minnesota Cities to cover this issue for cities. Public Works Director Olson stated the program went into effect November 15, 2010. He explained the City is protected, should there be a sewer backup, if it is not negligent and cleans sewers on schedule, doing what is reasonable and prudent. However, if the City does not maintain its system and there is a backup, in League' s view the City is not being reasonable or prudent and would have to pay the $2,500 deductible if a claim is filed. Councilmember Backous commented that when there is a sewer backup, it is a mess and has to be cleaned as quickly as possible so the property owner usually lets the insurance companies fight out who is responsible. Chairperson McGlone asked what the Committee is being asked to approve. Councilmember Backous explained that the League of Minnesota Cities will reduce premiums by requiring safety and maintenance measures /loss control measures in written format. He noted if the system is maintained in an orderly fashion, there will be fewer losses /claims. Motion by Councilmember Elvig, seconded by Councilmember Backous, to recommend that the City Council authorize staff to formalize the Sanitary Sewer Maintenance Policy. Motion carried. Voting Yes: Chairperson McGlone and Councilmembers Elvig and Backous. Voting No: None. Case #5: Consider Change Order for City Improvement Project #11 -09; Alpine Drive Overlay City Engineer Himmer reviewed the staff report and recommendation to approve a change order for subgrade preparation in the amount of $12,000. Chairperson McGlone asked how this was missed in the road project, noting it is not the contractor's obligation to inform the City that something is left out of a project. City Engineer Himmer explained this project went from a mill and overlay, where there was no need for subgrade preparation, to a full depth reclamation that requires subgrade preparation. One group was working on the plans and bid form while the other group was working on the specifications and a disconnect occurred for including this one item. Public Works Director Olson explained it was an oversight by Engineering but even if it had been included, the City would have paid the same. He apologized for this oversight, noting it does not fall under the threshold of 3% that could be approved with change orders Staff is requesting approval. Public Works Committee / October 18, 2011 Page 8 of 12